EJBO Electronic Journal of Business Ethics and Organization Studies Vol. 9, No. 2 The Place of Spirituality in Organizational Theory

By: Arnaldo Oliveira Introduction addition, their research indicated that [email protected] employees expect organizations to cul- The term spirituality infers a number tivate some type of spirituality within Abstract of conclusions and may firmly imply some their members in order to produce high Spirituality in the American work- form of religious connotation. Several quality products and services. However, authors have offered a variety of defini- taking a different direction, Mohamed et place has been receiving increasing tions of spirituality: Some with atheistic al. claimed that the attempt to differenti- attention by the popular literature. and materialistic constructions (Deh- ate between spirituality and religiosity is However, the issue has received ler & Welsh, 1994; Mitroff & Denton, merely artificial. As an alternative to this little consideration from manage- 1999a; Ashmos & Duchon, 2000), and unnecessary dichotomy, they proposed ment scholars. Although there are others with pantheistic and deistic vi- that the concept of spirituality should several definitions of spirituality, sions (Benner, 1989; Mohamed, Hassan be added to the five-factor psychological & Wisnieski, 2001). To Griffin (1988), model of personality, the “Big Five,” as its this paper discusses it as a cultural for example, spirituality is an inherent sixth dimension. Their justification, nev- phenomenon that might influ- human characteristic that does not in- ertheless, attempted to find support in ence organizational behavior. The trinsically infer any religious meaning: the facts that the concept of spirituality investigation of spirituality in the Spirituality in this broad sense is not is not in opposition to other well-estab- workplace demands the examination an optional quality which we might elect lished psychological constructs and that of organization theory and some of not to have. Everyone embodies a [sic] the Big Five has already been linked to spirituality, even if it be a nihilistic or ma- job performance. Mohamed et al. also its concepts. Open systems, institu- terialistic spirituality. It is also, of course, speculated that spirituality, manage- tional isomorphism, open fields, in- customary to use spirituality in a stricter rial behavior and, job performance are, stitutionalism, and neo-institutional sense for a way of life oriented around to some extent, interconnected, which theories are examined. Spirituality an ultimate meaning and around values could explain some of the variances in job should not be neglected as a legiti- other than power, pleasure, and posses- performance that have not yet been eluci- mate organizational topic of study, sion. (pp. 1-2) dated by the Big Five. According to Mitroff and Denton, Although the literature has provided and more research on the impact of (1999a), spirituality is “the basic feeling of ample interpretations for spirituality, the spirituality in the workplace should being connected with one’s complete self, definition used in this article, in a broad be conducted. others, and the entire universe” (p.86). sense, refers to people’s values and mean- Dehler and Welsh (1994) defined spir- ings, which sometimes might incorporate ituality as “a specific form of work feeling religious beliefs as well. Further, this that energizes action” (p. 19). Ashmos premise also infers that spirituality might and Duchon (2000) discussed spirituali- carry strong cultural connotations. ty in the context of community work, and Benner (1989) believed that spirituality involves the process of establishing and Discussion maintaining a relationship with God. Mohamed, Hassan, and Wisnieski A New Paradigm (2001), highlighted the fact that several In recent years, the place of spiritual- scholars (Harlos, 2000; Shafranske & ity in organizations has been increasingly Malony, 1990) defended the importance considered by (a) managers, (b) execu- of defining the conceptual differences be- tives, (c) employees, and (d) research- tween spirituality and religiosity. Thus, ers to be essential to the organization's in their view, spirituality may be personal, interactions with employees, customers, inclusive, and positive, whereas religiosity and the community (Ashmos & Duchon, might be external, exclusive, and nega- 2000; Conger, 1994; Dehler & Welsh, tive. Supporting the recommendation of 1994; Hansen, 2001). However, little Mahamed et al., in a two-year empirical attention has been paid in the literature study based on both face-to-face inter- to the investigation of spirituality as a views and survey questionnaires, Mitroff cultural phenomenon that might influ- and Denton (1999b) found that 60 per- ence organizational behavior and induce cent of the participants viewed religion organizational change. Therefore, few as an inappropriate form of expression, change models that embraced some sort whereas spirituality was interpreted as of spiritual element (Senge, 1990; Covey, a proper subject for the workplace. In 1989) became an alternative.

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A number of studies (Graber & Johnson, 2001; Griffin, theories, developed mostly by academics and popularized by 1988; Hall, 1996; Hansen, 2001; Rifkin, 1995) indicated that consultants and gurus, and the actions of practicing managers. changes in individuals, demographics, and organizations rep- This is important because on it rests vital issues of management resent the major influencing forces forging a new workplace education and learning, and even more importantly, the basis paradigm, which demands more integrative approaches to life on which business is conducted. Yet, the relationship between and work. Founded on these change phenomena, Rifkin (1995) organizational theory and the practice of managers and other concluded that societies must devise a new labor contract fea- organizational participants has remained one of the most elu- turing shorter workweeks, so people could dedicate more time sive and recalcitrant. (p. 134) to other parts of their life and place more value in the time al- Organizational theory. Several studies (DiMaggio & located to volunteer and community work. Powell 1991; DiMaggio, 1998; Olivier, 1991) focused on how Hall (1996) predicted drastic changes in the organizations organizations influence their environments and how organiza- of the 21st century. He speculated that individuals rather than tions actively contribute to the social construction of these en- organizations would control careers and that success would be vironments. As a result, the process by which organizational measured in terms of psychological fulfillment rather than fi- environments are constituted, reproduced, and transformed has nancial accomplishment. In addition, he suggested that both become a relevant issue for management research. managers and employees should start facilitating the transition The open systems views of organizations. Organizations to this new paradigm by putting more meaning on relationships function like living organisms and prosper when all their sub- in the workplace. systems support their strategic designs. Therefore, a major role Besides the gradual importance on personal satisfaction for the leadership of these organizations is to align, or realign, highlighted by Hall, other relevant factors may also impose new strategy with the demands of their surrounding environments challenges to the private, public, and nonprofit sectors. For ex- (Overholt, Connally, Harrington, & Lopez, 2000). In other ample, the demographic changes that have been occurring in the words, the open systems approach views organizations receiv- United States for the last decades and, in particular, the rise of an ing inputs from their environments, and in turn, affecting those ethnically diverse workforce might have influenced the reshap- environments by the transformed outputs that are the organiza- ing of relationships in various organizational levels. According tional products. The open systems theory is based on “the idea to Hansen (2001), a number of conditions have contributed to that the whole of a system is more important than the sum of accentuate the human needs and desires for relationships, bal- its parts” (Senge et al., 1999, p.138). According to Overholt et ance, and community concern, which also have led to a shift- al. (2000), the open systems theory possesses four basic princi- ing on the emphasis from a dominating market standpoint to ples: a more human-needs approach. As a result, some corporations 1. Organizations are living systems that are ever-changing have paid more attention to the needs of certain groups of em- and adapting to their external environment ployees for benefits such as childcare, long-term care, and well- 2. Organizations are dynamic internally, with all subsystems ness programs. anticipating, responding, or reacting to changes within the or- According to Palmer (2001), spirituality at the workplace ganization has been trending up. To highlight his viewpoint, he mentioned 3. Organizations organize around their corporate survival that large corporations such as Intel, Wal-Mart, Xerox, Ford, strategy, exploiting and filling niches in the markets Nike, and Harley-Davidson have supported spirituality in their 4. Organizations must be internally congruent or consistent work environments. Organizations could become more suc- to maximize efficiency and effectiveness (p. 39) cessful if they thoroughly meet their members’ needs, which also Institutional isomorphism and organizational fields. Chang, include allowing individuals to express their spirituality. Sup- Williams, Griffith, and Young (1998) investigated how open porting this premise, Mitroff and Denton (1999a) concluded systems organizations create institutional isomorphism. They that spirituality is fundamental to the human experience and affirmed that churches, as open systems organizations, allow therefore should make part of the organizational culture. They their external surroundings, which comprises (a) suppliers, (b) proposed a new organizational paradigm that (a) embodies consumers, (c) regulators, and (d) social conditions, to permeate concepts such as the existence of a supreme power, (b) pledges their internal environment. As a result, organizational behav- responsibility to multiple stakeholders, and (c) paves the path ior assumes here a major responsive characteristic to facing the for businesses to take the evolutionary step of changing from conditions created in the external environments. The greater values-based companies into spiritually-based organizations. the interaction of the organization with the surrounding envi- ronment, the more likely its organizational model absorbs the Organizational Theory and Spirituality structures, norms, and practices from the most central relation- To investigate how spirituality integrates and influences or- ships in its environment. ganizational behavior not only as a personality dimension, as According to DiMaggio and Powell (1991), the perennial proposed by Mohamed et al. (2001), but as a reflection of peo- feedback process between internal and external generates a ho- ple’s values and meanings, this paper also highlights the theory of mogenizing effect in organizations, which they termed “institu- organizations and some of its concepts such as (a) open systems, tional isomorphism.” In other words, institutional isomorphism (b) institutionalism, (c) neo-institutionalism, (d) organizational refers to the phenomenon by which organizations lose some of fields, (e) institutional isomorphism, and (f ) culture. Another their distinctive characteristics in terms of behavior, structure, relevant reason for revisiting organizational models was offered and culture, and come to resemble one another (Stout & Cor- by Yiannis (2002), who examined the relationship between or- mode, 1998). ganization theory and the practices of academics, managers, and Organizations emerge in environments surrounded by organizational consultants in the sense that what can be verified other institutions that overlap, interact, and collide with them. in practical ways. As he put into context: Thus, DiMaggio and Powell (1991) proposed the concept of In the area of organizational studies, there is a pressing need “organizational fields” to explain this larger world of surround- to explore, understand and codify the relationship between ing institutions. Cormode (1998) explained that organizations

18 http://ejbo.jyu.fi/ EJBO Electronic Journal of Business Ethics and Organization Studies Vol. 9, No. 2 producing similar services and products, working with similar its affects and, as such, some of these models may be misleading suppliers, and under similar regulatory conditions form an or- or incomplete” (p. 647). ganizational field. Organizational fields and isomorphism both Graber and Johnson (2001) discussed the rationality of offer a theoretical basis to explain how organizations might in- the spiritual dimension in organizational life. They concluded fluence each other. that the search for spiritual growth and fulfillment should not Institutional theory and neo-institutionalism. Institutional be separated from work because of the challenge of balancing theory has played a sine qua non role in explaining the proc- personal, subjective, and unconscious elements of individual esses by which distinct forms of organizing prevail within an or- experience with rationality, efficiency, and personal sacrifices ganizational field (Cormode 1998, DiMaggio & Powell, 1991; demanded by organizations. Other authors (Bickham, 1996; Stout & Cormode, 1998). Another significant contribution of Conger, 1994; Marcic, 1997) also defended organizational de- institutional theory is the examination of how organizations signs that embody a sense of community and spirituality and adopt structures, processes, and ideas based on external influ- discussed the leadership potentials of incorporating spiritual ences rather than on efficiency (Lawrence, 1999). The study values into the management field. Bickham (1996) claimed that of institutional theory has been fundamental to explain the when spirituality is cultivated in the workplace, a creative en- isomorphism of organizational fields and the establishment of ergy is unlocked. Conger (1994) suggested that the definition institutional norms (Kondra & Hinings, 1998). The process of leadership should include the spiritual dimension. Thus, this of creating organizational norms occurs through normative, expanded and new characterization of leadership could contrib- coercive, and mimetic processes (DiMaggio & Powell, 1991). ute to the development of a work life that benefits the organiza- In addition, values and beliefs external to the organization ul- tion, its members, and the community. Marcic (1997) recom- timately contribute to determine organizational norms. Thus, mended the incorporation of spiritual values into the modern organizations may conform to the rules and requirements of theory of organizing as an alternative for reengineering and their organizational field. downsizing initiatives. Recent contributions to institutional theory (DiMaggio & Mitroff and Denton (1999b) identified five different or- Powell, 1991; DiMaggio, 1998; Scott, 1994) discriminated be- ganizational models founded on religion or spirituality. The tween the old and new approaches of institutional theory. The religious-based organization is either positive toward religion old institutionalism emphasizes issues of conflicting interests and spirituality or positive toward religion but negative toward and values, whereas the new institutionalism stresses the pro- spirituality. Evolutionary organizations begin with an affilia- motion of isomorphism and argues for conformity within a field tion with a particular religion and later adopt principles that are (DiMaggio, 1998) more ecumenical. The recovering organization works similarly DiMaggio (1998), for example, distinguished three new to institutions like the Alcoholics Anonymous as a way to foster forms of institutionalisms: (a) rational-action, (b) social-con- spirituality. In socially responsible organizations, the founders structivist, and (c) mediated-conflict. Rational-action neo- are guided by spiritual principles that they apply directly to their institutionalism explains how organizational structures and business. Philosophical principles that are not related to any norms influence the elements of individual rational actions, particular religion or spirituality guide the founders and leaders which are actors, interests, and preferences. Social-constructiv- of values-based organizations. Mitroff and Denton suggested ist neo-institutionalism proposes that all elements of rational- that these five models might offer major change alternatives for action models are socially constructed. Mediated-conflict neo- the organizational theory and for some of the recent manage- institutionalism focuses on the way the government and other ment remedies, as each model is born after the occurrence of organizations mediate conflict among groups with distinctive a critical event. Thus, the impulse to pursue spirituality comes interests. Selznick (1996) who expressed his concerns about from the desire to successfully overcome crises. the course and ethos of the new institutionalism affirmed: The “new institutionalism” in the study of organizations has generated fresh insights as well as interesting shifts of focus. Conclusions The underlying continuities are strong, however, because both the “old” and the “new” [sic] reflect a deeply internalized socio- Recently, the issue of spirituality at the workplace in the logical sensibility. (p. 274) United States has been receiving an increasing attention in the The cultural factor. The term culture infers a number of popular literature. A study (Mitroff & Denton, 1999a) indi- conclusions. However, Brake, Walker and Walker (1995) de- cating how Americans feel about spirituality in the workplace fined culture as a set of value orientations that represents the as well as several popular books on spiritual management and central core of meanings in human societies. Value orientations leadership (Bickham, 1996; Conger, 1994; Marcic, 1997) have dictate preferences in life and explain how people behave, think, been published. Many authors (Graber & Johnson, 2001; Grif- and believe. These value orientations or underlying elements of fin, 1988; Hall, 1996; Hansen, 2001; Rifkin, 1995) examined culture are quasi-static patterns that people learn as they grow the factors that have concurred to the rise of spirituality in the up and that interact in their social groups. Therefore, culture in- American workplace First, irreversible global changes contrib- fluences actions, decisions, modi operandi and vivendi, feelings, uted to forming the desires for a new workplace paradigm. Sec- and thoughts. Further, culture plays a major role in configuring ond, a workforce with multiple ethnicities brought new insights the perception mechanisms that allow individuals to interpret to the American workplace. Third, several studies (Conger, themselves, others, organizations, and the world. 1994; Marcic, 1997; Mitroff & Denton, 1999a; Mohamed et al., 2001; Palmer, 2001) suggested that spirituality is a critical Organizational Theory and Spirituality human need and definitely should be part of organizational cul- According to Mohamed et al. (2001), organizational theo- ture. Finally, organizations realized they could become more ries and models that ignore the spiritual dimension will remain successful by meeting their members’ needs and allowing them deficient. As they put it into context: “Our current models of to express their spirituality. micro and macro behavior do not account for spirituality and Although spirituality in the workplace has become popular,

19 http://ejbo.jyu.fi/ EJBO Electronic Journal of Business Ethics and Organization Studies Vol. 9, No. 2 the subject has received little attention from management schol- community. For example, Mitroff and Denton (1999b) identi- ars. Nevertheless, the investigation of spirituality in the work- fied five different organizational models founded on religion or place requires a careful examination of organization theory and spirituality and proposed a new structure embedded in spiritual some of its concepts because essential topics of management values. and the very basis on which business is conducted lie in them. Spirituality should not be neglected as a legitimate topic of For instance, neo-institutionalism, based on social constructiv- study. Current models and theories do not consider spirituality ism, proposed that all organizational elements are derived from and its effects, and some of these models might be misleading and constructed by the social environments surrounding or- or incomplete. Corporate culture should make a place for spir- ganizations. Another example is culture as a significant factor itual expression, which may take many different forms, resulting influencing how organizations adopt structures, processes, and in benefits such as a better workplace, an improved quality of ideas. It explains the behavior, way of thinking, and beliefs of products and services, and a satisfied workforce. social groups. The essence of culture is neither visible nor tangi- ble, whereas it is the shared underlying assumptions that people use to understand others and themselves. Recommendations If the tenets of open systems, institutional, and neo-insti- tutional theories hold, and if spirituality is a cultural phenom- Although, research on the impact of spirituality in the work- enon, then spirituality might influence organizational behavior place has been lacking, future studies should consider a number and culture. As a result, organizational theories and models of important issues. Future investigations should focus on the that ignore the spiritual dimension will remain incomplete. Al- implications of spirituality for organizational behavior for exam- though not based on the above hypothesis, other authors (Bick- ple. Another important topic would be the study of spirituality ham, 1996; Conger, 1994; Marcic, 1997) defended new organi- as a cultural phenomenon. Further, it could be appropriate to zational paradigms that incorporate spirituality and a sense of examine the relationship between spirituality and personality.

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Arnaldo Oliveira

Ph.D. 1508 Pensacola St. 403 Honolulu Hawaii, 96822 U.S.A. Email: [email protected]

Arnaldo Oliveira holds a Master of Arts in Organizational Change and a Ph.D. in organization and management with a specialization in Finance. He is now a business consultant in the nonprofit sector.

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